A chronology of economics at Carnegie (in progress)

To illustrate the previous post on the difficulties in putting together a chronology, here is tentative chronology of economics at Carnegie. It’s still in process, and links, sources and entries will be updated as I research.

It reflects my general interest in the subject, but also my specific concern with a small cluster of economists who have so far remained in the background of the Carnegie picture. Must-read historical Carnegie economics include Rancan’s paper, which waves together the different early strands of thinking about expectations at Carnegie in the 50s; Augier and March’s chapter on the GSIA from their book on business schoolsFourcade and Khurana’s paperand Khurana’s book on business schoolsAugier’s work on and Crowther-Heyck’s extensive biography of Herbert Simon (see here and here), Sent who ties together her study of Sargent’ rational expectations and her analysis of Simon as a cyborg scientist, the witness seminar on rational expectations organized by Hoover and Young in 2011Freitas’s research on Lucas. On the origins of Lucas’s rational expectations modeling strategy, see the work by Judy Klein.


-Establishment of the GSIA (Graduate Schol of Industrial Administration) at the Carnegie Institute of Technology (CIT) by George Leland Bach

-Recruitment of Herbert Simon and William Cooper


– Project on intra-firm behavior (funded US Air Force)


-Arrivals: Modigliani (from Illinois, had been working on expectations and business fluctuations), Muth (graduate program)

-beginning of project on inventory planning (funded ONR): Holt Cooper Miller Muth Simon


-Arrivals: Dreze (visiting that year), Miller (faculty, or 1953?)

“The Control of Inventories and Production Rates: A Survey” by Simon and Holt (application of servomechanism to inventory and planning)

-”The Predictability of Social Events” by Modigliani and Brumberg


“A behavioral model of rational man” Simon


Arrivals: Ando (graduate program)


Arrivals: Meltzer (faculty)


Organizations by March and Simon

“Elements of a Theory of Human Problem Solving” Simon-Newell-Shaw

“The Cost of Capital, Corporation Finance and the Theory of Investment” Modigliani-Miller


Ando graduates (dissertation subject?)


-Departures: (Modigliani, to Northwestern, then MIT in 62); Miller (to Chicago); Ando (to MIT)

Planning, Production, Inventory and the Workforce by Holt, Modigliani, Muth, Simon


“Rational Expectations and the Theory of Price Movements” by John Muth


-Arrivals: Rapping( faculty)


-Arrivals: Lucas ( assistant professor), Lovell (graduate program), Prescott (graduate program)

-Williamson graduates (PhD Title: “The Economics of Discretionary Behavior: Managerial Objectives in a Theory of the Firm” )

A Behavioral Theory of the Firm by Cyert and March (see Augier)


-Sargent is a research associate

-Prescott and Mortensen graduate. Prescott recruited at Penn, Mortensen at Northwestern


-Arrivals: Kydland (graduate program, works on the assignment problem), Azariadis (graduate program, working on theoretical labor markets and implicit contracts)

“Real Wages, Employment and Inflation” Lucas-Rapping

-In the wake of the Phelps conference on Microfoundations at Penn in January, Lucas writes a draft on expectations and the neutrality of money

Phelps conference on Microfoundations at Penn


-Arrivals: Cass (faculty, tranfered from Yale. Supervises Kydland)


– “Investment under uncertainty” by Lucas and Prescott


“Expectations and the neutrality of money” Lucas

-“On capital overaccumulation in the aggregative, neoclassical model of economic growth: a complete characterization” Cass

-“Risk aversion and wealth effects on portfolios with many assets” Cass and Stiglitz

-Lucas and Prescott working on models of labor market search


-Azariadis graduates (worked with Lucas and Prescott) and leaves to Brown

-Kydland graduates (dissertation title: Decentralized Macroeconomic Planning)

-First (?) Carnegie-Rochester conference on public policy, organized by Meltzer and Brunner. Theme: the Phillips curve and Labor markets

-Creation of the Shadow Open Market Committee by Brunner and Meltzer

-Lucas working on a draft of his critique of econometric policy evaluation


departures: Cass (to Penn), Lucas accepts an offer by Chicago in January.

-“Equilibrium search and Unemployment” by Lucas and Prescott

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